Best Buy cuts sales forecast as inflation tempers spending

By ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Best Buy has cut its annual sales and profit forecast, citing surging inflation that has dampened consumer spending on gadgets. The Minneapolis-based company echoed Walmart, which earlier this week said higher prices on basic necessities are forcing shoppers to cut back on discretionary items. Shares of Best Buy fell more than 2% in after-market trading Wednesday. The nation’s largest consumer electronics chain said it now expects this year’s sales at stores opened at least a year to be down 11%, much steeper than the 3% to 6% drop it originally forecast in May.